"Frequently leads on market-defining transfer pricing disputes, often with multi-billion dollar outcomes."
Chambers USA 2017

Overview

Since joining Mayer Brown in 1989, Scott Stewart’s practice has focused exclusively on tax disputes, including transfer pricing issues arising under I.R.C. §482 and intercompany debt matters arising under I.R.C. §385. He represents taxpayers at all levels of federal tax controversy, including audits, administrative appeals before the Internal Revenue Service, mediation involving the Appeals division of the IRS, and litigation before the United States Tax Court.

Recognized by Chambers USA each year from 2006 through 2019, Scott is described as "a talented litigator and corporate advisor" who wins the confidence of clients with his "extraordinary communication skills," "professional demeanor" and "broad and deep experience." He is "recommended for his spot-on judgment and analysis," "his responsiveness and strategic thinking" and his "ability to anticipate issues before they arise." Chambers describes him as "an extremely capable can-do tax lawyer" who is "easy to work with" and "very knowledgeable on the subject matter, attentive to client needs and quick to learn the client's issues and business." Chambers notes that he is "particularly adept at handling transfer pricing cases at all levels" and "frequently leads on market-defining transfer pricing disputes, often with multi-billion dollar outcomes."

Scott has extensive experience with deductibility of interest expense in related-party transactions, including debt-versus-equity characterization and "sham transaction" and "economic substance" issues, dating back to his involvement in the landmark Nestlé Holdings case during the 1990s. More recently, Scott led the Mayer Brown team that filed 15 Tax Court petitions concerning debt-equity issues on behalf of Tyco International and related companies. The cases, which involved $3 billion in interest expense incurred from 1998 through 2000 and implicated an additional $6.5 billion in interest expense incurred from 2001 through 2007, were settled for 5% of the amount in dispute.

Scott is also experienced in all aspects of international transfer pricing, including cross-border movements of tangible and intangible property, advance pricing agreements, cost sharing arrangements, Section 6662 documentation, Section 936 Puerto Rico possessions corporations and issues related to the OECD's Base Erosion and Profit Shifting (BEPS) initiative. His transfer pricing litigation experience includes a number of major cases of the last three decades, such as National Semiconductor, Seagate Technology, Nestlé Holdings and United Parcel Service.

Scott's experience also includes acquisition-related issues, such as valuation of tangible and intangible assets. He advises clients on tax treaty matters, competent authority issues, attorney-client and related privilege issues, tax penalties, and accounting for tax matters under FIN 48 of the Financial Accounting Standards Board. His industry experience includes manufacturing, pharmaceutical, medical device and food processing companies. Scott holds a JD from Harvard Law School and an MBA from the Johnson Graduate School of Management at Cornell University.

Spoken Languages

  • English
Highlights
Tax Controversy Team of the Year

Experience

  • General Foods Credit Corporation v. Director, New Jersey Division of Taxation, Tax Court of New Jersey Docket No. 011703-15
  • General Foods Credit Investors #3 Corporation v. Director, New Jersey Division of Taxation, Tax Court of New Jersey Docket No. 011330-15
  • Tyco Electronics Corp., formerly known as AMP, Inc., & Subsidiaries v. Commissioner of Internal Revenue, Tax Court Docket No. 16654-13 (filed July 22, 2013) (debt-equity characterization).
  • Covidien LP, f.k.a. Tyco Healthcare Group, LP, Covidien Holding Inc., f.k.a. SWD Holding, Inc. I, Tax Matters Partner v. Commissioner of Internal Revenue, Tax Court Docket No. 16663-13 (filed July 22, 2013) (debt-equity characterization).
  • Tyco Electronics Corporate Holdings, Inc., as successor in interest to Tyco Holdings, Inc. & Subsidiaries v. Commissioner of Internal Revenue, Tax Court Docket No. 16661-13 (filed July 22, 2013) (debt-equity characterization).
  • Tyco Electronics Corp., as successor in interest to Tyco International (PA), Inc. & Subsidiaries v. Commissioner of Internal Revenue, Tax Court Docket No. 16659-13 (filed July 22, 2013) (debt-equity characterization).
  • Tyco Electronics Corp., as successor in interest to TSSL Holding Corp. & Subsidiaries v. Commissioner of Internal Revenue, Tax Court Docket No. 16655-13 (filed July 22, 2013) (debt-equity characterization).
  • Tyco Electronics Corporate Holdings, Inc., as successor in interest to Tyco (US) Holdings, Inc. & Subsidiaries v. Commissioner of Internal Revenue, Tax Court Docket No. 16658-13 (filed July 22, 2013) (debt-equity characterization).
  • Tyco Electronics Corp., as successor in interest to Tycom (US) Holdings, Inc. & Subsidiaries v. Commissioner of Internal Revenue, Tax Court Docket No. 16662-13 (filed July 22, 2013) (debt-equity characterization).
  • Tyco Electronics Corp., as successor in interest to Tycom Simplex Holdings, Inc. & Subsidiaries v. Commissioner of Internal Revenue, Tax Court Docket No. 16651-13 (filed July 22, 2013) (debt-equity characterization).
  • United States Surgical Corporate & Subsidiaries v. Commissioner of Internal Revenue, Tax Court Docket No. 16664-13 (filed July 22, 2013) (debt-equity characterization).
  • ADT Holdings, Inc. v. Commissioner of Internal Revenue, Tax Court Docket No. 16656-13 (filed July 22, 2013) (Withholding Tax).
  • Sherwood Medical Company I v. Commissioner of Internal Revenue, Tax Court Docket No. 16652-13 (filed July 22, 2013) (Withholding Tax).
  • Covidien Group S.A.R.L., f/k/a Tyco Group S.A.R.L. v. Commissioner of Internal Revenue, Tax Court Docket No. 16653-13 (filed July 22, 2013 (Withholding Tax).
  • Tyco Electronics Corp., as successor in interest to Tyco International (PA), Inc. v. Commissioner of Internal Revenue, Tax Court Docket No. 16657-13 (filed July 22, 2013) (Withholding Tax).
  • Tyco Electronics Corporate Holdings, Inc., as successor in interest to Tyco (US) Holdings, Inc. v. Commissioner of Internal Revenue, Tax Court Docket No. 16660-13 (filed July 22, 2013) (Withholding Tax).
  • Amergen Energy Co., LLC, by and through Exelon Generation Co., LLC, Tax Matters Partner v. The United States, 94 Fed.Cl. 413, (2010) (opinion on discovery motion to compel admissions). For an article analyzing the Court’s decision see Jasper L. Cummings, Jr., “Capitalization: Selling Nuclear Decommissioning Funds”, Daily Tax Report, (10/12/2010).
  • Saba Partnership, Brunswick Corporation, Tax Matters Partner, et al. v. Commissioner of Internal Revenue, 78 T.C.M. (CCH) 684 (1999), vacated by 273 F.3d 1135 (D.C. Cir. 2001), remanded to 85 T.C.M (CCH) 817 (2003) (challenge to investment partnerships as devoid of economic substance).
  • PNC Financial Services Group, Inc. v. Commissioner of Internal Revenue (formerly Riggs National Corp. v. Commissioner of Internal Revenue), 503 F.3d 119 (D.C. Cir. 2007), aff'g  T.C. Memo. 2004-110, 87 T.C.M. (CCH) 1276 (2004) ("Riggs III"), on remand from 295 F.3d 16 (D.C. Cir. 2002), rev’g and remanding T. C. Memo. 2001-12, 81 T.C.M. (CCH) 1023 (2001) (“Riggs II”), on remand from 163 F.3d 1363 (D.C. Cir. 1999), rev’g and remanding 107 T.C. 301 (1996) (“Riggs I”) (holding that official tax receipts of Brazilian government were entitled to evidentiary presumption).
  • United Parcel Service of America v. Commissioner of Internal Revenue, 254 F.3d 1014 (11th Cir. 2001), rev’g and remanding , T.C. Memo. 1999-268, 78 T.C.M. (CCH) 262 (1999) (vacating Tax Court’s finding on sham, assignment of income and penalties).
  • Overseas Partners Ltd. v. Commissioner of Internal Revenue, T.C. Docket No. 15966-95 (engaged in business issues arising under I.R.C. §§ 882 and 842) (conceded by IRS).
  • Nestle Holdings, Inc. v. Commissioner of Internal Revenue, 70 T.C.M. (CCH) 682 (1995) (I.R.C. § 482 reallocations, Carnation acquisition).
  • National Semiconductor Corporation v. Commissioner of Internal Revenue, 67 T.C.M. (CCH) 2849 (1994), acq. in result, 1995-2 C.B. 1 (I.R.C. § 482 reallocations).
  • Seagate Technology, Inc. v. Commissioner of Internal Revenue, 102 T.C. 149 (1994) (I.R.C. § 482 reallocations).
  • Intel Corporation v. Commissioner of Internal Revenue, 100 T.C. 616 (1993), aff’d, 67 F.3d 1445 (9th Cir. 1995) (allocation of income partly from sources within a foreign country under Treas. Reg. § 1.863-3(b)(2)).
  • National Semiconductor Corporation v. Commissioner of Internal Revenue, 61 T.C.M. (CCH) 2005 (1991) (burden of proof in I.R.C. § 482 case).

Education

Harvard Law School, JD

Cornell University, MBA, with distinction (accounting & finance)

Creighton University, BS, cum laude

Admissions

  • Illinois

Court

  • US Tax Court